NowAuto Group, Inc. Announces Fiscal First Quarter 2009
Results

TEMPE, Ariz., Nov. 14 -- NowAuto Group, Inc. (OTC Bulletin Board: NAUG;
Other OTC: NWAU) today announced results for its fiscal 2008 first quarter
ended September 30, 2008. The Company reported revenue of $1.1 million and
a net loss of $0.06 per diluted share versus revenue of approximately $1.0
million and a net loss of $0.05 per diluted share in the prior year. During
the quarter ended September 30, 2008 gross margin declined as a result of
losses incurred in disposing of lower quality inventory at the beginning of
the quarter. Gross margin improved significantly in August and September,
returning to normal levels. The disposal of certain inventory was also the
reason for the higher loss incurred in the quarter.

In spite of general economic conditions and the significant impact on
auto purchasing, charge-offs and defaults improved significantly over the
prior quarter and prior year as a result of increased credit criteria,
improved contract management and system upgrades. Bad debt expense for the
quarter ended September 30, 2008 improved 22% from the prior quarter and 5%
year-over- year. Net Contract Receivables and deferred revenue from leases
increased 1% over the prior quarter. Administrative, financing and selling
expenses dropped by approximately 25% in spite of significantly higher
interest expense.

"The present condition of the sub-prime and below sub-prime auto market
has continued to impact our industry and our company," said CEO Scott
Miller. "While our emphasis is always on collections, our challenge in the
current environment is to aggressively work with our customers to maintain
active contracts. New finance programs and changes in marketing and
advertising have begun to yield positive results early in the December 31
quarter. Nevertheless, we expect a difficult environment for the
foreseeable future. Our commitment to customers and shareholders alike
remains; NowAuto will do whatever it can to maintain productive contracts
without placing imprudent demands on our customers," Miller said.

"We have made significant changes to many areas of our company in the
past six months," said Chief Financial Officer Faith Forbis. "Although some
of these changes are not complete yet, we are confident that when finished,
they will move us closer to profitability. It takes time for their impact
to be felt."

"Concurrent to working with existing customers, we have increased
advertising and initiated new customer incentive programs to increase sales
during this slower period," said Chief Operating Officer Tino Valenzuela.
"We experienced significant sales increase in October and will continue to
introduce innovative strategies to increase sales," Valenzuela said.

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